Shareholders of Nigerian Breweries Plc have approved the cancellation of 1.9 billion unissued ordinary shares following the company’s recently concluded ₦599.1bn rights issue.
The resolution was passed at the company’s 79th Annual General Meeting (AGM) held in Lagos, marking a significant milestone in the restructuring of its share capital.
The cancelled shares, which were not taken up during the rights issue, were removed in compliance with Section 124 of the Companies and Allied Matters Act (CAMA) 2020 and Regulation 13 of the Companies Regulations 2021.
With this action, the company’s issued share capital has been revised downward to ₦15.49bn, now divided into 30,983,026,920 ordinary shares of 50 kobo each.
Prior to the cancellation, the company had created 22.61 billion additional ordinary shares, raising the total share capital to ₦16.44bn as part of the capital restructuring strategy for the ₦599.1bn rights issue approved by shareholders at the AGM held on April 26, 2024.
In a resolution ratified at the 79th AGM, shareholders formally endorsed all actions taken by the Board of Directors under the authority granted at the previous AGM.
This included the creation of the new shares and subsequent cancellation of the 1.9 billion units not subscribed to.
The capital adjustment forms part of the company’s broader strategy to strengthen its balance sheet and support long-term financial sustainability.
The management noted that the rights issue and related changes are crucial for reducing debt, improving liquidity, and positioning Nigerian Breweries for future growth amid a challenging macroeconomic environment.
In addition to the capital restructuring, shareholders also approved amendments to Article 81 of the company’s Articles of Association, granting the Board of Directors greater flexibility in securing financing.
Under the amended provision, directors may borrow funds up to two and a half times the paid-up share capital and reserves, excluding temporary bank loans, without further shareholder approval.
The amendment, however, includes safeguards: any lender or third party dealing with the company is not required to confirm if the borrowing threshold is observed, although debts incurred beyond the limit would only be invalid if the lender had prior knowledge that the limit had been exceeded.
Shareholders Approve Cancellation Of 1.9 Billion Nigerian Breweries Shares is first published on The Whistler Newspaper
Source: The Whistler
